VeroLube Inc. of Canada plans to build API Group II and III rerefineries in Alberta, Canada, and in Houston, with construction expected to start as early as late 2014.
The engineers will be designing through September 2014, and construction will start shortly after that, VeroLube CEO Leslie Wulf told Lube Report. Were also exploring other regions for other refineries – they will all be based around our ability to secure feedstock. In 2014s first quarter, the company anticipates closing on the acquisitions of used oil collection companies under contract to form its own collection network.
Wulf claimed that the companys proprietary ReGen rerefining process can recover about 75 percent of used oil input capacity as rerefined base oil. Of that, he said, about two thirds is API Group III quality and the remainder is Group II.
In a news release, VeroLube said it expects its first rerefinery in Bowden, Alberta, to have initial throughput capacity of 1,000 barrels per day (15 million gallons per year), which will later be expanded to 2,000 b/d. The company expects the Alberta plant to have about 750 barrels per day rerefined base oil capacity initially, with room to expand to 1,500 b/d. The site is just north of Calgary on property owned by Parkland Refining Ltd.
This site provides significant existing infrastructure and permitting in place that reduce the overall capital cost as compared to a pure greenfield location, the company said of the Alberta location. Parkland is the largest independent distributor of fuel and oil in Canada and brings several strategic benefits to VeroLube, including access to terminal services and the potential for process operations personnel. Wulf said western Canada is also a good market for a rerefinery in terms of the amount of used oil collected.
The Houston rerefinery is projected to have initial throughput capacity of 4,000 b/d with the ability to expand to 6,000 b/d. The company expects the Houston rerefinery will have about 3,000 b/d rerefined base oil production capacity initially, with the ability to expand that to 4,500 b/d. The site is located on the Houston ship channel.
VeroLube said its ReGen process was created, tested, certified and patented over the past 10 years.
When we tested and certified this process, we actually brought in oil from around the world and processed oil from different regions and parts of the world through it, to make sure we got the same outcome, Wulf said. The ability for the company to rerefine various grades of used oils into high quality products, especially Group II base lubricating oil without hydrotreating, gives VeroLube a significant market advantage over other used oil rerefinery applications. He noted the process also makes low sulfur two diesel.
The company said its rerefineries are engineered and designed in a modular train format to enable the rerefinery to process different grades of used oil and allow for expansion based on the availability of used oil feedstock.
Houston-based Wood Group Mustang will provide design and development services from both its Calgary, Alberta, and Houston, Texas offices. The company has an extensive background in both traditional refining and rerefining, and has been involved with projects involving several rerefinery processes over the years, said Rick Kolodziej, process technology manager for Wood Group Mustang.
